## BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

) Application of ) ) KaiserAir, Inc. ) ) for a certificate of public convenience and necessity ) pursuant to 49 U.S.C. § 41102 to engage in foreign ) charter air transportation of persons, property ) and mail ) ) Docket OST-2012-0138

SUBMISSION OF KAISERAIR, INC. PURSUANT TO ORDER 2013-5-8 Communications with respect to this document should be addressed to:

Mark W. Atwood Elizabeth J. Wadsworth Cozen O'Connor 1627 I Street, N.W. Washington, D.C. 20006 (202) 463-2513 Attorneys for KaiserAir, Inc.

Dated: May 24, 2013

## BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

) Application of ) ) KaiserAir, Inc. ) ) for a certificate of public convenience and necessity ) pursuant to 49 U.S.C. § 41102 to engage in foreign ) charter air transportation of persons, property ) and mail ) ) Docket OST-2012-0138

SUBMISSION OF KAISERAIR, INC. PURSUANT TO ORDER 2013-5-8 KaiserAir, Inc. ("KaiserAir") hereby submits the information and materials required by the Department in Order 2013-5-8, in order to make KaiserAir's Certificate of Public Convenience and Necessity effective. KaiserAir submits as follows:
1. KaiserAir's relevant Operations Specifications for its foreign operations (A001 and A003) are enclosed as Exhibit 1.
2. A copy of a Certificate of Insurance (Form DOT 6410) evidencing coverage meeting the requirements of 14 CFR Section 205 is attached as Exhibit 2.
3. There have been no changes in KaiserAir's ownership, operating plans, financial posture or compliance history since the Show Cause Order was issued in this case. In terms of key personnel, Sandy Water, the Vice-President of Business Development, retired effective December 31, 2012. He has not been replaced.

### 4. The attached current financial information (Exhibits 3 and 4) show that the

company is in excellent financial condition. As noted in the Order issuing the Certificate, KaiserAir has no start-up costs since it already operates the aircraft that will be used for its foreign operations. The company, however, will require $779,310 in funds to cover the first three months of its first year of foreign operations. KaiserAir clearly has access to more than ample resources to cover this amount, as shown by the Wells Fargo Bank funds verification letter enclosed as Exhibit 3.
5. KaiserAir's most recent balance sheets are enclosed as Exhibit 4 and also provide proof of the company's continuing financial health. Exhibit 4 contains both a current balance sheet for KaiserAir and a consolidated balance sheet for the company and its affiliates. KaiserAir's balance sheet shows that as of March 31, 2013, it had approximately $11.9 million in total current assets and total current liabilities of approximately $4.6 million, leaving the company with a positive working capital of approximately $7.3 million. The consolidated balance sheet shows even higher figures, with total current assets at $12.9 million, and $5.1 million in total current liabilities, leaving a difference of $7.8 million in positive working capital.
6. Finally, enclosed as Exhibit 5 is the required President's Certification.
WHEREFORE, KaiserAir requests that the Department make this authority effective as quickly as possible upon submission of this information and material.

2 LEGALV16591474\1

## Respectfully submitted,

Mark W. Atwood Elizabeth J. Wadsworth Cozen O'Connor 

## 1627 I Street, N.W. Washington, D.C. 20006 (202) 463-2513 Attorneys for KaiserAir, Inc.


## Dated: May 24, 2013

3 LEGAL\16591474\1

### CERTIFICATE OF SERVICE



### I, Elizabeth J. Wadsworth, hereby certify that on this 24th day of May, 2013, I served via electronic mail the foregoing Submission of KaiserAir, Inc. on the following person:

Roger N. Zimmerman Principal Operations Inspector FAA Oakland FSDO-27 1420 Harbor Bay Parkway Suite 280 Alameda, California 94502-7083 roger.n.zimmerman@faa.gov

Elizabeth J. Wadsworth

# EXHIBIT 1

Operations SpecificationsSupplemental operations in Common carriage persuant 119,21(a)(3) - to Title 14 Code Supplemental (S) of Federal Regulations (CFR) section

On Demand operations in Common carriage persuant 119.21(a)(5) - to Title 14 Code ON DEMAND of Federal Regulations (CFR) section and provided, at all times, the certificate holder has appropriate written economic authority issued by the Department of Transportation. and provided, at all times, the certificate holder has appropriate written economic authority issued by the Department of Transportation. U S. Department of Transportation Federal Aviation Administration 

### Operations Specifications

A001 . 

### Issuance and Applicability HQ Control: 05/09/2003 HQ Revision: 02c 

### a. These operations specifications are issued to KaiserAir, Inc., whose principal base of operation is located at: Primary Business Address: 8735 Earhart Road, Hanger 4 Oaldand International Airport Oaldand, California 94621 Mailing Address: P.O. Box 2626 Oakland, California 94614-2626
The holder of these operations specifications is the holder of Certificate Number COZA942C and shall hereafter be referred to as the certificate holder. The certificate holder is authorized to conduct:

The certificate holder shall conduct these kinds of operations in accordance with the specific authorizations, limitations, and procedures in these operations specifications and all appropriate Parts of the CFR.
b. These operations specifications arc effective as of the "Date Approval is effective" listed in each paragraph and shall remain in effect as long as the certificate holder continues to meet the requirements of Part 119 as specified for certification,

c. KaiserAir

d. The certificate holder is authorized to conduct flights under 14 CFR Part 91 for crewmember training, maintenance tests, ferrying, re-positioning, and the carriage of company officials using the applicable authorizations in these operations specifications, without obtaining a Letter of Authorization, provided the flights are not conducted for compensation or hire and no charge of any

1MISIMI ■ • ■ •• ■■ •• ■■■ •• ■ • ■ • 

### Certificate No.: COZA942C Print Date: 3/1/2011 A001-1 KaiserAir, Inc.U.S. Department of Transportation Federal Aviation Administration 

### Operations Specifications

gi2111$41,11b111$ 

### kind is made for the conduct of the flights.



### I . The Certificate Holder applies for the Operations in this paragraph. 2. Support information reference: 3. These Operations Specifications are approved by direction of the Administrator.

2(111,10mi i3:3';00 ( 1,1trd 1 inh.: I,ocut ion: \A ch01"-;ti )i;2ild11,\ 1

- 1,\ koL2.,:r murmn, Prink:i1\111 Torations Inv,xIor Pr)



### 4, Date Approval is effective: 03/01/2011 Amendment Number: 2 5.1 hereby accept and receive the Operations Specifications in this paragraph. Mancebo, David A., Director of Operations

201 I,0 01 I 123

. 42 C ;mini! ' , Utr1cf..n

. (1 I ink! 1 (cdtion: \\ )I , Sc,

iud 11) I );I\ \ hilic v ho 1):1\ id \ Liircntot iti iperations



### Date: 0301/2011

Print Date: 3'1/2011 A001-2 Certificate No.: COZA942C KaiserAir, Inc.1FR/VFR 

### 9.2 )(3) Supplementa S)

Type Seeti Ea Route Configuration of Fri

- A

- On-Demand Type Seetionli9 Operati Class/Category Configuration Operation

,aramcc ■ i•Mn`nws ■■ =1.M 

### 9,21(a) - On-Demand , :''AX and Cargo

On-Demand ?AX and Cargo PAX and Cargo MEL 

### TFRNFR CE-500-560 CE-501-501 FRJVFR 

### 312/ VTR GA- 9-1V E1S- 1 A :1 9.21(a 5) - On-Demand PAX and Cargo PAX and Cargo 

### ,2121V

- FR ay„.Night VFR DayfNighi ER Route ozzazzalanwa U.S. Department of Transportation Federal Aviation Administration

VIZE= 

## Operations Specifications

A003 . AL L 

## Aut.— izat:— HQ Control: 03/10/2011 HQ Revision: 02h



## a. The certificate holder is authorized to conduct operations under the provisions of Title 14 CFR Part 121 using 

## airplanes with the approved configuration and operations described in the following table:

b. The certificate holder is authorized to conduct operations under the provisions of Title 14 CFR Part 135 using aircraft with the approved configuration and operations described in the following table:

Print Date: 4/18/2012 A003-1 Certificate No.: COZA942C KaiserAir, Inc.U.S. Department of Transportation Federal Aviation Administration 

## Operations Specifications

1. The Certificate Holder applies for the Operations in this paragraph. 2. Support information reference: 3. These Operations Specifications are approved by direction of the Administrator.

20 i 2.04.20 08:56:39 Cemral Daylight Time 1.oeation: WehOPSS J)igilalh signed 11‘ Roger N Zimmerman. Principal Operations inspector (WPM



## 4. Date Approval is effective: 04/18/2012 Amendment Number: 2 5. I hereby accept and receive the Operations Specifications in this paragraph. Mancebo, David A., Director of Operations

2012.04.1g 10:38:10 Central Da light 'rime Location: WehOPSS Digitally signed h David Manceho on hehalloi Maned:1o. Da , . id A,. Director of

- Operations



## Date: 04/18/2012

Print Date: 4/18/2012 A003-2 Certificate No.: COZA942C KaiserAir, Inc.

# EXHIBIT 2

Certificate of InsuranceAGENCY DISPLAY OF ESTIMATED BURDEN The public reporting burden for this collection of information is estimated to average 30 minutes per response. If you wish to comment on the accuracy of the estimate or make suggestions for reducing this burden, please direct your comments to: U.S. Department of Transportation, Office of Aviation Analysis, X-56, 400 7` h St., SW., Washington, D.C. 20590. According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. NOTE: For information on where to file completed copies of this form, see FILING INSTRUCTIONS below. 'Nffia rig Office of the Secretary of Transportation OMB No. 2106-0030 Expires 2-28-2011 

### U.S. AIR CARRIERS - CERTIFICATE OF INSURANCE POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BODILY INJURY

AND PROPERTY DAMAGE LIABILITY FILING INSTRUCTIONS: File a signed original of this form with the Federal Aviation Administration, AFS-260, 800 Independence Ave., S.W., Washington, D.C. 20591, (See EXCEPTIONS 1 and 2 below.) EXCEPTION 1: If Block 28 on the reverse Is filled in because the Insured is a commuter air carrier, file a signed original of this form with the Department of Transportation, Air Carrier Fitness Division, X-56, 400 7e St., SW, Washington, DC 20590, EXCEPTION For any insured that is located in the State of Alaska (regardless as to whether Block 2A, 26, or 20 is filled in), file a signed original of this form with the Federal Aviation Administration, Alaskan Region Mg., AAL-230, 222 W. 7 th Ave., #14, Anchorage, Alaska 99513. (Please type information, except signatures.) 

### THIS CERTIFIES THAT: United. States Aircraft Insurance Group c/o USAU (Name of Insurer) has issued a policy or policies of Aircraft Liability Insurance to KaiserAir, Inc . 

### P.O. Box 2626, Airport Station, Oakland, CA 94614 COZA942C FAA Certificate Number (Name, address and FM Certificate number of Insured U.S. Air Carrier) effective from 1 2 /3 1/2 0 1 2 until ten (10) days after written notice from the insurer or carrier of the intent to terminate coverage is received by the Department of Transportation, NOTE: Part 205 of the Department's Regulations does not allow for a predetermined termination date, and a certificate showing such a date Is unacceptable.
1. The Insurer (Check One): DI is licensed to issue aircraft insurance policies in the United States; CI Is licensed or approved by the government of to issue aircraft insurance policies; or El is an approved surplus line Insurer in the State(s) of
The insurer assumes, under the policy or policies listed below, aircraft accident liability insured to minimums at least equal to the following during operation, maintenance, or use of aircraft In "air transportation" as that term is defined In 49 U.S.C. 40102, (Complete applicable section(s) A, B, or C below); A. U.S. AIR TAXI OPERATORS (EXCLUDING U.S. COMMUTER AIR CARRIERS) WITH PART 298 AUTHORITY ONLY: The aircraft covered by this policy are SMALL AIRCRAFT (I,e., with 60 or fewer passenger seats or with a maximum payload capacity of 18,000 pounds or less). (Complete separate or combined coverage as appmpriatej: CI Separate Coverages: Minimum Limit

Polio No, T •e of Liabilit Bodily Injury Liability (Excluding Passengers) Passenger Bodily Injury Each erson Each Occurrence $75,000 $300,000 $75,000 $75,000 x 75% of

total number of passenger seats Installed in aircraft Property Damage $100,000
1:1 Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily Injury. Policy No. Amount of Coverage D This policy covers CARGO operations only and excludes passenger liability insurance,
OST Form 6410Minimum Limit

O Separate Coverages:

$300,000 $300,000 x 75% of total number of passenger seats installed in aircraft

C. U.S. CERTIFICATED AIR CARRIERS OPERATING LARGE AIRCRAFT The aircraft covered by this policy are LARGE AIRCRAFT (i.e„ with more than 60 passenger seats or with a maximum payload capacity of more than 18,000 pounds). (Complete separate or combined coverage as appropriate);

$300,000 $300,000 x 75% of

total number of passenger seats installed in aircraft

FAA or Foreign Flag Registration No, N73 7KA 

### Boeing 737-700 Make and Model The policy or policies listed in this certificate insure(s) (Check One): LI Operations conducted with all aircraft operated by the insured 0 Operations conducted with the following types of aircraft: 2 Operations with the following aircraft: (Use additional page if necessary)

(Date) (Date) B. U,S. COMMUTER AIR CARRIERS OR CERTIFICATED AIR CARRIERS OPERATING SMALL AIRCRAFT The aircraft covered by this policy are SMALL AIRCRAFT (i,e., with 60 or fewer passenger seats or with a maximum payload capacity of 18,000 pounds or less), (Complete separate or combined coverage as appropriate):

Policy No. Type of Liability Each person Each 

## Occurrence

Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability Passenger Bodily Injury $300,000 $2,000,000

O Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily Injury, Policy No. Amount of Coverage

O This policy covers CARGO operations only and excludes passenger liability insurance.

0 Separate Coverages:

Policy No. Type of Liability

Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability Passenger Bodily Injury Minimum Limit Each person Each Occurmnce
$300,000 $20,000,000

IN Combined Coverage: The amount of coverage st forth below is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers), propedy damage, and passenger bodily injury. Policy No, SIIIL1- 7 2 9T Amount of Coverage $600 , 000 , 000


### LI Thls policy covers CARGO operations only and excludes passenger liability Insurance.

Each policy listed in this certificate meets or exceeds the requirements in 14 CFR Part 205. 

### United States Aircraft Insurance Group (Name of Insurer) 

### 15303 Dallas Pkwy, Suite 1370 (Address) 

### Addison, TX 75001 (City, State, Zip Code) 

### Mike Lowman Contact (person who can verify the effectiveness of the coverage)
(Area Code, Phone Number) (Area Code, Fax Number)

(Signature, If applicable) 

### AirSure Limited, LLC (Name of Srokor, if applicable) 

### 25548 Genesee Trail Road (Address) 

### Golden, CO 80401

(City, State, zip Code) 

### Kerin Dodd

(Officer or authorized representative) (303 ) 526 - 5300 / (303 ) 536 - 5303



### p (Area C 

## k z ,,.,P one.Numbor (1-felCode, Fax Number) 

# 1 / ' ---1 2 14 (Signature) 5/23/2013

# FAHIBIT 3

Funds Verification LetterEast Bay Commercial Banking 555 12' Street, Suite 2150 Oaldand, CA 94607



## May 21, 

## 2013 Re: KaiserAir, Inc. To whom it may concern: KaiserAir, Inc. and related entities and affiliates, colleetively maintain funds and marketable securities on deposit or managed by Wells Fargo Bank in excess of $2.6 million as of May 21, 2013. 

## KaiserAir has been a client of Wells Fargo Bank for more than ten years. We consider KaiserAir to be highly credit worthy. Please feel free to contact me directly at 510.625.2540 should you have any questions or concerns regarding our relationship with KaiserAir, Inc. Sincerely,

Marc Homertgen Senior Vice President 510.625.2540

Wells Fargo Bank, N.A.

# FAI IIB IT 4

Balance SheetsKaiserAir Consolidated Profit/Loss statement Jan 2013-Mar 2013

Revenues $ 6,847,444 COGS 3,134,496 Gross Margin 3,712,948
Operating Expenses 3,652,088 Net Operating Income 60,860

Other Income 103,220 Pre-tax income $ 164,080

Assets: KaiserAir Consolidated Balance Sheet @ March 31,

2013 KaiserAir (only) Balance Sheet @ March 31, 2013

Cash $ 4,591,390 4,123,500 Accounts Receivables 6,929,213 6,596,428 Inventory 1,249,352 1,095,561 Prepaid Expenses 181,383 159,539 Total Current Assets 12,951,338 11,975,027

Fixed Assets: Equipment (at cost) 13,815,582 4,149,650 Aircraft 6,697,535 6,697,535 Amortizable Lease Costs 688,926 270,317 Accumulated Depreciation (10,204,906) (8,920,558) Net Fixed Assets 10,997,137 2,196,944

Other Assets: Santa Rosa Jet Center, LLC 9,773,453 9,326,420 Deposits % Long Term Securities 587,540 447,033 Total Assets $ 34,309,467 $ 23,945,425
Liabilities & Equity: Accounts Payables $ 1,847,472 1,442,041 Advance Payments from Clients 1,635,497 1,622,614 Reserve for Aircraft Maintenance 892,996 892,996 Accrued Employment Charges 678,858 650,817 Income Tax Payable 33,500 33,500 Total Current Liabilities 5,088,322 4,641,967
Stockholder's Equity Common Stock 18,360 18,360 Retained Earnings 29,202,785 19,285,098 Total Stockholder's Equity 29,221,145 19,303,458

Total Liabilities $ 34,309,467 $ 23,945,425

# EXHIBIT 5

President's Certification

## CERTIFICATION

Pursuant to Title 18 United States Code section 1001, I, Ronald J. Guerra, in my individual capacity and as the authorized representative of the applicant, have not in any manner knowingly and willfully falsified, concealed or covered up any material fact or made any false, fictitious or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution of the application. I understand that an individual who is found to have violated the provisions of 18 U.S.C. section 1001 shall be fined not more than $10,000 or imprisoned not more than five years, or both.

Ronald J. Guerra President & CEO KaiserAir, Inc. Date: 5/23/2013